TY - CHAP
T1 - Evolutionary learning of the optimal pricing strategy in an artificial payment card market
AU - Alexandrova-Kabadjova, Biliana
AU - Tsang, Edward
AU - Krause, Andreas
PY - 2008
Y1 - 2008
N2 - This chapter introduces an artificial payment card market in which we model the interactions between consumers, merchants and competing card issuers with the aim of determining the optimal pricing structure for card issuers. We allow card issuers to charge consumers and merchants fixed fees, provide net benefits from card usage and engage in marketing activities. The demand by consumers and merchants is only affected by the size of the fixed fees and the optimal pricing structure consists of a sizeable fixed fee to consumers, no fixed fee to merchants, negative net benefits to consumers and merchants as well as a high marketing effort.
AB - This chapter introduces an artificial payment card market in which we model the interactions between consumers, merchants and competing card issuers with the aim of determining the optimal pricing structure for card issuers. We allow card issuers to charge consumers and merchants fixed fees, provide net benefits from card usage and engage in marketing activities. The demand by consumers and merchants is only affected by the size of the fixed fees and the optimal pricing structure consists of a sizeable fixed fee to consumers, no fixed fee to merchants, negative net benefits to consumers and merchants as well as a high marketing effort.
UR - http://dx.doi.org/10.1007/978-3-540-77477-8_13
U2 - 10.1007/978-3-540-77477-8_13
DO - 10.1007/978-3-540-77477-8_13
M3 - Chapter or section
SN - 9783540774761
T3 - Studies in Computational Intelligence
SP - 233
EP - 251
BT - Natural Computing in Computational Finance
A2 - Brabazon, A
A2 - O'Neill, M
PB - Springer
ER -